Covered Call Value Play (AMED) 5.38% ROI in 39 Days

Running an Advanced Option screener today looking for good covered call opportunities on value stocks for the 11/20 expiration date.

The first stock that came up on the list, which was closed out naked put trade this week is (NASDAQ:AMED). AMED is a value play with a P/E of 5.50. There were four potential trades that came up for (AMED).

The $26 in the money strike on AMED has a 5.15% ROI for 39days. The covered call that looked most compelling is the out of the money $28 strike with 5.38% ROI and 7.38% downside protection.

The risk/reward on the $28 strike makes this trade more attractive than the ITM strikes. Now the research to make sure from a fundamental standpoint this is a good pick.